Commercial Lease Agreement
This Commercial Lease Agreement ("Lease") is made and effective _______________________
[Date], by and between _______________________ [Landlord] ("Landlord") and
_______________________ [Tenant] ("Tenant").
Landlord is the owner of land and improvements commonly known and numbered as
_____________________________________________________________________ [Address
of Building] and legally described as follows (the "Building"):
_____________________________________________________________________
_____________________________________________________________________ [Legal
Description of Building]
Landlord makes available for lease a portion of the Building designated as
__________________________________________________ [Suite or Other Number of
Leased Building] (the "Leased Premises").
Landlord desires to lease the Leased Premises to Tenant, and Tenant desires to lease the
Leased Premises from Landlord for the term, at the rental and upon the covenants, conditions
and provisions herein set forth.
THEREFORE, in consideration of the mutual promises herein, contained and other good and
valuable consideration, it is agreed:
1. Term.
A. Landlord hereby leases the Leased Premises to Tenant, and Tenant hereby leases the same
from Landlord, for an "Initial Term" beginning _______________________ [Start Date] and
ending _______________________ [End Date]. Landlord shall use its best efforts to give Tenant
possession as nearly as possible at the beginning of the Lease term. If Landlord is unable to
timely provide the Leased Premises, rent shall abate for the period of delay. Tenant shall make
no other claim against Landlord for any such delay.
B. Tenant may renew the Lease for one extended term of _______________________ [Renewal
Term]. Tenant shall exercise such renewal option, if at all, by giving written notice to Landlord not
less than ninety (90) days prior to the expiration of the Initial Term. The renewal term shall be at
the rental set forth below and otherwise upon the same covenants, conditions and provisions as
provided in this Lease.
2. Rental.
A. Tenant shall pay to Landlord during the Initial Term rental of _______________________
[Annual Rent] per year, payable in installments of _______________________ [Monthly Rental
Amount] per month. Each installment payment shall be due in advance on the first day of each
calendar month during the lease term to Landlord at
_____________________________________________________________________
[Landlord's Designated Payment Address] or at such other place designated by written notice
from Landlord or Tenant. The rental payment amount for any partial calendar months included in
the lease term shall be prorated on a daily basis. Tenant shall also pay to Landlord a "Security
Deposit" in the amount of _______________________ [Security Deposit].
B. The rental for any renewal lease term, if created as permitted under this Lease, shall be
_______________________ [Annual Rent in Renewal Term] per year payable in installments
of _______________________ [Monthly Rental Amount] per month.
3. Use
Notwithstanding the forgoing, Tenant shall not use the Leased Premises for the purposes of
storing, manufacturing or selling any explosives, flammables or other inherently dangerous
substance, chemical, thing or device.
4. Sublease and Assignment.
Tenant shall have the right without Landlord's consent, to assign this Lease to a corporation with
which Tenant may merge or consolidate, to any subsidiary of Tenant, to any corporation under
common control with Tenant, or to a purchaser of substantially all of Tenant's assets. Except as
set forth above, Tenant shall not sublease all or any part of the Leased Premises, or assign this
Lease in whole or in part without Landlord's consent, such consent not to be unreasonably
withheld or delayed.
5. Repairs.
During the Lease term, Tenant shall make, at Tenant's expense, all necessary repairs to the
Leased Premises. Repairs shall include such items as routine repairs of floors, walls, ceilings,
and other parts of the Leased Premises damaged or worn through normal occupancy, except for
major mechanical systems or the roof, subject to the obligations of the parties otherwise set forth
in this Lease.
6. Alterations and Improvements.
Tenant, at Tenant's expense, shall have the right following Landlord's consent to remodel,
redecorate, and make additions, improvements and replacements of and to all or any part of the
Leased Premises from time to time as Tenant may deem desirable, provided the same are made
in a workmanlike manner and utilizing good quality materials. Tenant shall have the right to place
and install personal property, trade fixtures, equipment and other temporary installations in and
upon the Leased Premises, and fasten the same to the premises. All personal property,
equipment, machinery, trade fixtures and temporary installations, whether acquired by Tenant at
the commencement of the Lease term or placed or installed on the Leased Premises by Tenant
thereafter, shall remain Tenant's property free and clear of any claim by Landlord. Tenant shall
have the right to remove the same at any time during the term of this Lease provided that all
damage to the Leased Premises caused by such removal shall be repaired by Tenant at Tenant's
expense.
7. Property Taxes.
Landlord shall pay, prior to delinquency, all general real estate taxes and installments of special
assessments coming due during the Lease term on the Leased Premises, and all personal
property taxes with respect to Landlord's personal property, if any, on the Leased Premises.
Tenant shall be responsible for paying all personal property taxes with respect to Tenant's
personal property at the Leased Premises.
8. Insurance.
A. If the Leased Premises or any other part of the Building is damaged by fire or other casualty
resulting from any act or negligence of Tenant or any of Tenant's agents, employees or invitees,
rent shall not be diminished or abated while such damages are under repair, and Tenant shall be
responsible for the costs of repair not covered by insurance.
B. Landlord shall maintain fire and extended coverage insurance on the Building and the Leased
Premises in such amounts as Landlord shall deem appropriate. Tenant shall be responsible, at its
expense, for fire and extended coverage insurance on all of its personal property, including
removable trade fixtures, located in the Leased Premises.
C. Tenant and Landlord shall, each at its own expense, maintain a policy or policies of
comprehensive general liability insurance with respect to the respective activities of each in the
Building with the premiums thereon fully paid on or before due date, issued by and binding upon
some insurance company approved by Landlord, such insurance to afford minimum protection of
not less than $1,000,000 combined single limit coverage of bodily injury, property damage or
combination thereof. Landlord shall be listed as an additional insured on Tenant's policy or
policies of comprehensive general liability insurance, and Tenant shall provide Landlord with
current Certificates of Insurance evidencing Tenant's compliance with this Paragraph. Tenant
shall obtain the agreement of Tenant's insurers to notify Landlord that a policy is due to expire at
least (10) days prior to such expiration. Landlord shall not be required to maintain insurance
against thefts within the Leased Premises or the Building.
9. Utilities.
Tenant shall pay all charges for water, sewer, gas, electricity, telephone and other services and
utilities used by Tenant on the Leased Premises during the term of this Lease unless otherwise
expressly agreed in writing by Landlord. In the event that any utility or service provided to the
Leased Premises is not separately metered, Landlord shall pay the amount due and separately
invoice Tenant for Tenant's pro rata share of the charges. Tenant shall pay such amounts within
fifteen (15) days of invoice. Tenant acknowledges that the Leased Premises are designed to
provide standard office use electrical facilities and standard office lighting. Tenant shall not use
any equipment or devices that utilizes excessive electrical energy or which may, in Landlord's
reasonable opinion, overload the wiring or interfere with electrical services to other tenants.
10. Signs.
Following Landlord's consent, Tenant shall have the right to place on the Leased Premises, at
locations selected by Tenant, any signs which are permitted by applicable zoning ordinances and
private restrictions. Landlord may refuse consent to any proposed signage that is in Landlord's
opinion too large, deceptive, unattractive or otherwise inconsistent with or inappropriate to the
Leased Premises or use of any other tenant. Landlord shall assist and cooperate with Tenant in
obtaining any necessary permission from governmental authorities or adjoining owners and
occupants for Tenant to place or construct the foregoing signs. Tenant shall repair all damage to
the Leased Premises resulting from the removal of signs installed by Tenant.
11. Entry.
Landlord shall have the right to enter upon the Leased Premises at reasonable hours to inspect
the same, provided Landlord shall not thereby unreasonably interfere with Tenant's business on
the Leased Premises.
12. Parking.
During the term of this Lease, Tenant shall have the non-exclusive use in common with Landlord,
other tenants of the Building, their guests and invitees, of the non-reserved common automobile
parking areas, driveways, and footways, subject to rules and regulations for the use thereof as
prescribed from time to time by Landlord. Landlord reserves the right to designate parking areas
within the Building or in reasonable proximity thereto, for Tenant and Tenant's agents and
employees. Tenant shall provide Landlord with a list of all license numbers for the cars owned by
Tenant, its agents and employees. Separated structured parking, if any, located about the
Building is reserved for tenants of the Building who rent such parking s paces. Tenant hereby
leases from Landlord _______________________ [Number of Parking Spaces] spaces in such
structural parking area, such spaces to be on a first come-first served basis. In consideration of
the leasing to Tenant of such spaces, Tenant shall pay a monthly rental of
_______________________ [Parking Space Rental] per space throughout the term of the
Lease. Such rental shall be due and payable each month without demand at the time herein set
for the payment of other monthly rentals, in addition to such other rentals.
13. Building Rules.
Tenant will comply with the rules of the Building adopted and altered by Landlord from time to
time and will cause all of its agents, employees, invitees and visitors to do so; all changes to such
rules will be sent by Landlord to Tenant in writing. The initial rules for the Building are attached
hereto as Exhibit "A" and incorporated herein for all purposes.
14. Damage and Destruction.
Subject to Section 8 A. above, if the Leased Premises or any part thereof or any appurtenance
thereto is so damaged by fire, casualty or structural defects that the same cannot be used for
Tenant's purposes, then Tenant shall have the right within ninety (90) days following damage to
elect by notice to Landlord to terminate this Lease as of the date of such damage. In the event of
minor damage to any part of the Leased Premises, and if such damage does not render the
Leased Premises unusable for Tenant's purposes, Landlord shall promptly repair such damage at
the cost of the Landlord. In making the repairs called for in this paragraph, Landlord shall not be
liable for any delays resulting from strikes, governmental restrictions , inability to obtain necessary
materials or labor or other matters which are beyond the reasonable control of Landlord. Tenant
shall be relieved from paying rent and other charges during any portion of the Lease term that the
Leased Premises are inoperable or unfit for occupancy, or use, in whole or in part, for Tenant's
purposes. Rentals and other charges paid in advance for any such periods shall be credited on
the next ensuing payments, if any, but if no further payments are to be made, any such advance
payments shall be refunded to Tenant. The provisions of this paragraph extend not only to the
matters aforesaid, but also to any occurrence which is beyond Tenant's reasonable control and
which renders the Leased Premises, or any appurtenance thereto, inoperable or unfit for
occupancy or use, in whole or in part, for Tenant's purposes.
15. Default.
If default shall at any time be made by Tenant in the payment of rent when due to Landlord as
herein provided, and if said default shall continue for fifteen (15) days after written notice thereof
shall have been given to Tenant by Landlord, or if default shall be made in any of the other
covenants or conditions to be kept, observed and performed by Tenant, and such default shall
continue for thirty (30) days after notice thereof in writing to Tenant by Landlord without correction
thereof then having been commenced and thereafter diligently prosecuted, Landlord may declare
the term of this Lease ended and terminated by giving Tenant written notice of such intention, and
if possession of the Leased Premises is not surrendered, Landlord may reenter said premises.
Landlord shall have, in addition to the remedy above provided, any other right or remedy
available to Landlord on account of any Tenant default, either in law or equity. Landlord shall use
reasonable efforts to mitigate its damages.
16. Quiet Possession.
Landlord covenants and warrants that upon performance by Tenant of its obligations hereunder,
Landlord will keep and maintain Tenant in exclusive, quiet, peaceable and undisturbed and
uninterrupted possession of the Leased Premises during the term of this Lease.
17. Condemnation.
If any legally, constituted authority condemns the Building or such part thereof which shall make the Leased
Premises unsuitable for leasing, this Lease shall cease when the public authority takes possession, and
Landlord and Tenant shall account for rental as of that date. Such termination shall be without prejudice to
the rights of either party to recover compensation from the condemning authority for any loss or damage
caused by the condemnation. Neither party shall have any rights in or to any award made to the other by the
condemning authority.
18. Subordination.
Tenant accepts this Lease subject and subordinate to any mortgage, deed of trust or other lien presently
existing or hereafter arising upon the Leased Premises, or upon the Building and to any renewals,
refinancing and extensions thereof, but Tenant agrees that any such mortgagee shall have the right at any
time to subordinate such mortgage, deed of trust or other lien to this Lease on such terms and subject to
such conditions as such mortgagee may deem appropriate in its discretion. Landlord is hereby irrevocably
vested with full power and authority to subordinate this Lease to any mortgage, deed of trust or other lien
now existing or hereafter placed upon the Leased Premises of the Building, and Tenant agrees upon
demand to execute such further instruments subordinating this Lease or attorning to the holder of any such
liens as Landlord may request. In the event that Tenant should fail to execute any instrument of
subordination herein require d to be executed by Tenant promptly as requested, Tenant hereby irrevocably
constitutes Landlord as its attorney-in-fact to execute such instrument in Tenant's name, place and stead, it
being agreed that such power is one coupled with an interest. Tenant agrees that it will from time to time
upon request by Landlord execute and deliver to such persons as Landlord shall request a statement in
recordable form certifying that this Lease is unmodified and in full force and effect (or if there have been
modifications, that the same is in full force and effect as so modified), stating the dates to which rent and
other charges payable under this Lease have been paid, stating that Landlord is not in default hereunder (or
if Tenant alleges a default stating the nature of such alleged default) and further stating such other matters
as Landlord shall reasonably require.
19. Security Deposit.
The Security Deposit shall be held by Landlord without liability for interest and as security for the
performance by Tenant of Tenant's covenants and obligations under this Lease, it being expressly
understood that the Security Deposit shall not be considered an advance payment of rental or a measure of
Landlord's damages in case of default by Tenant. Unless otherwise provided by mandatory non-waivable
law or regulation, Landlord may commingle the Security Deposit with Landlord' s other funds. Landlord may,
from time to time, without prejudice to any other remedy, use the Security Deposit to the extent necessary to
make good any arrearages of rent or to satisfy any other covenant or obligation of Tenant hereunder.
Following any such application of the Security Deposit, Tenant shall pay to Landlord on demand the amount
so applied in order to restore the Security Deposit to its original amount. If Tenant is not in default at the
termination of this Lease, the balance of the Security Deposit remaining after any such application shall be
returned by Landlord to Tenant. If Landlord transfers its interest in the Premises during the term of this
Lease, Landlord may assign the Security Deposit to the transferee and thereafter shall have no further
liability for the return of such Security Deposit.
20. Notice.
Any notice required or permitted under this Lease shall be deemed sufficiently given or served if
sent by United States certified mail, return receipt requested, addressed as follows:
If to Landlord to:
______________________________________________
[Landlord]
______________________________________________
[Landlord's Address]
If to Tenant to:
______________________________________________
[Tenant]
______________________________________________
[Tenant's Address]
Landlord and Tenant shall each have the right from time to time to change the place notice is to
be given under this paragraph by written notice thereof to the other party.
21. Brokers.
Tenant represents that Tenant was not shown the Premises by any real estate broker or agent
and that Tenant has not otherwise engaged in, any activity which could form the basis for a claim
for real estate commission, brokerage fee, finder's fee or other similar charge, in connection with
this Lease.
22. Waiver.
No waiver of any default of Landlord or Tenant hereunder shall be implied from any omission to take any
action on account of such default if such default persists or is repeated, and no express waiver shall affect
any default other than the default specified in the express waiver and that only for the time and to the extent
therein stated. One or more waivers by Landlord or Tenant shall not be construed as a waiver of a
subsequent breach of the same covenant, term or condition.
23. Memorandum of Lease.
The parties hereto contemplate that this Lease should not and shall not be filed for record, but in
lieu thereof, at the request of either party, Landlord and Tenant shall execute a Memorandum of
Lease to be recorded for the purpose of giving record notice of the appropriate provisions of this
Lease.
24. Headings.
The headings used in this Lease are for convenience of the parties only and shall not be considered in
interpreting the meaning of any provision of this Lease.
25. Successors.
The provisions of this Lease shall extend to and be binding upon Landlord and Tenant and their respective
legal representatives, successors and assigns.
26. Consent.
Landlord shall not unreasonably withhold or delay its consent with respect to any matter for which Landlord's
consent is required or desirable under this Lease.
27. Performance.
If there is a default with respect to any of Landlord's covenants, warranties or representations under this
Lease, and if the default continues more than fifteen (15) days after notice in writing from Tenant to Landlord
specifying the default, Tenant may, at its option and without affecting any other remedy hereunder, cure
such default and deduct the cost thereof from the next accruing installment or installments of rent payable
hereunder until Tenant shall have been fully reimbursed for such expenditures, together with interest
thereon at a rate equal to the lessor of twelve percent (12%) per annum or the then highest lawful rate. If this
Lease terminates prior to Tenant's receiving full reimbursement, Landlord shall pay the unreimbursed
balance plus accrued interest to Tenant on demand.
28. Compliance with Law.
Tenant shall comply with all laws, orders, ordinances and other public requirements now or
hereafter pertaining to Tenant's use of the Leased Premises. Landlord shall comply with all laws,
orders, ordinances and other public requirements now or hereafter affecting the Leased
Premises.
29. Final Agreement.
This Agreement terminates and supersedes all prior understandings or agreements on the
subject matter hereof. This Agreement may be modified only by a further writing that is duly
executed by both parties.
30. Governing Law.
This Agreement shall be governed, construed and interpreted by, through and under the Laws of
the State of New Jersey.
IN WITNESS WHEREOF, the parties have executed this Lease as of the day and year first above
written.
______________________________________________
[Landlord] Signature Block
______________________________________________
[Tenant] Signature Block